Manufacturing PMI data out of China and Japan revealed a further contraction into negative territory. This was the theme in Europe, with further declines in Manufacturing PMI in both Germany and France. The decline in Europe is a reflection of the de-industrialisation of Europe through high energy imposts and green-regulation. The US PMI data was strong and getting stronger, also confirmed by the important ISM Manufacturing number, released overnight. Crypto’s are taking an absolute bath, with highly leveraged investors triggering margin calls and sell orders. It is mayhem in this market space. The US Dollar was softer, with the EUR regaining 1.1600, while the GBP consolidated above 1.3200.The softer reserve allowed the NZD to build above 0.5700, while the AUD trades up to 0.6550. An Australian Inflation gauge, released yesterday, showed inflation on the rise. This builds the case for the RBA, to hold rates at elevated levels, thus supporting the AUD currency.
